Optimal Group (OPMR)

Company

"Optimal Group Inc. is a leading payments and services company with operations throughout North America and the United Kingdom. Through Optimal Payments, we process credit card payments for Internet businesses, mail-order/telephone-order and retail point-of-sale merchants, and process electronic checks and direct debits online and by phone. Through FireOne Group and its subsidiaries, we process online gaming transactions through the use of credit and debit cards, electronic debit and through FirePay, a leading stored-value, electronic wallet. FireOne Group offers FirePay for non-gaming purchases as well. Through Optimal Services Group, we provide repair depot and field services to retail, financial services and other third-party accounts." (company website)

OPMR 3-month stock chart

Buy

Optimal took a dive when it reported in October but shows signs of having bottomed out.

  • Price momentum (PPO) — picking up steadily
  • Trend (ADX) — strengthening again after a long period of decline
  • Money flow (CMF) — still an outflow but improving greatly
  • Relative strength (RSI) — risen from very weak to neutral
  • Volume — very worrisome, frankly, as the average volume is falling

Based on technical analysis, MarketEdge has OPMR as a "strong buy" with a "strong uptrend" in the chart. Considering the declining volume, however, I have set my stop-loss activation price higher than I otherwise would.

Sell

loss Bottom line
-2%

For no apparent reason, OPMR took a big dive, and my stop-loss order kicked in, limiting the loss to 2%. With 20:20 hindsight, I was very wise to have paid attention to the declining volume. I would have been wiser still to have avoided the buy entirely, despite the technical analysis of Market Edge.